On its Quarterly Country Risk report for June 2010, the Central American Monetary Council (SECMCA), notes that Moody’s Investor Service improved the foreign currency risk ratings for Guatemala and Nicaragua. For Guatemala, the criteria for this improvement included a stable macroeconomic environment, backed by prudent fiscal and monetary policies, and for Nicaragua improvement in debt indicators and low fiscal deficits.

Despite these improvements, the region still needs to improve its economic situation to reach investment grade ratings, and join the ranks of Chile, Brazil, Mexico and Panama.

The report includes a detailed situation report for each country.

Source: Central American Executive Secretariat of the Monetary Council

More on this topic

Moody's Maintains Guatemala's Risk Rating

July 2019

Arguing that the economy reports stable growth, and that a prudent management of monetary and fiscal policy has been made, the agency decided to maintain in Ba1, with a stable perspective, the country's credit rating.

The low fiscal deficit caused by strict controls on public spending and reduced indexes of public indebtedness, as well as a demonstrated economic resilience to extra-economic events, are other of Moody's arguments.

Moody's Foresees Drop in El Salvador's Risk Rating

March 2013

Low economic growth, a poor fiscal situation, and high exposure to external shocks, are the conditions that could lead to a drop in the sovereign rating to speculative grade level.

Framed in a report entitled "The strong get stronger and the weak weaker," which analyzes the prospects of sovereign risk in the countries of Latin America and the Caribbean, the chapter on El Salvador indicates a high chance that the rating agency will lower the country's credit rating to B1.

Costa Rica's Economy to January 2011

January 2011

Stock Market company, Aldesa, published its “Economic Situation in Costa Rica”.

Monthly Economic Activity Index
The most recent estimate in the Monthly Index of Economic Activity (MIEA) for the month of October shows an average variation of 4.7%, reflecting a significant weakening of the manufacturing sector which in turn is offset by the improved performance of sectors such as agriculture , trade and transport.

Guatemala Faces Four Risks

June 2009

Guatemala´s BB+ sovereign risk rating and stable perspective, which is so close to the desired “Investment Grade,” is facing four threats.

According to an article by C.Véliz and J. Gramajo in Sigloxxi.com, Mauricio Choussy, the director of Fitch Central America, notes that four weaknesses persist in the country: “Low tax revenue, weak social indicators, social instability, and high levels of delinquency.”